Maguire Moves to Cut Holdings
Developer Robert Maguire III is shopping his substantial real estate empire in a bid to finance new development at Playa Vista and other projects, according to people familiar with the company.
Los Angeles-based Maguire Partners hired investment banking firm Credit Suisse First Boston to sell a majority stake in his real estate portfolio, which is valued at about $2 billion. Maguire’s holdings include the 72-story Library Tower in downtown Los Angeles, Plaza Las Fuentes in Pasadena, Solana office park near Dallas and numerous other properties.
Maguire’s plan to sell a stake in his firm was reported in Real Estate Alert, an investment newsletter. Officials at Maguire Partners declined to comment, but industry sources familiar with the company confirmed its intention to raise cash and invest the proceeds in new projects.
Maguire has been forthcoming about his interest in pursuing development at the long-delayed Playa Vista project near Marina del Rey. He has tentatively agreed to buy more than 100 acres there for commercial development. His firm, in partnership with Chicago-based Equity Office Corp., recently began to prepare for construction of Playa Vista’s first office building, a 265,000-square-foot structure due to be completed next year.
Maguire also has considered redevelopment projects in downtown Los Angeles, Pasadena and other locations.
Credit Suisse First Boston began distributing information on Maguire Partners to potential investors less than two weeks ago. Responses are not expected until late June.
Maguire could raise capital by selling a stake in the operating company or in individual properties. Another potential scenario would involve a merger with a real estate investment trust.
Last year, Maguire Partners sold MGM Plaza, a 1.15-million-square-foot office complex in Santa Monica, to New York-based Tishman Speyer Properties for about $360 million.
